Barclays Plc

Barclays Plc (BARC) is an Investment Banking and Financial Services company based in London, the United Kingdom. The company’s core businesses include the provision of Retail, Corporate, Merchant and Investment Banking services to various industries and sectors across the globe. Barclays also engages in the provision of Portfolio and Wealth management services as well as Investment Management services to its High Net Worth Individual (HNWI) customers. The company’s main location is in London with operations spanning in countries across the globe. In terms of the geographical landscape, Barclays has 2 core divisions, namely, Barclays United Kingdom and the other being Barclays International. The 2 segments run operations in the name of Barclays Bank UK Plc and Barclays Bank Plc, and additionally, the Barclays service limited, acts as a group service firm which engages in the provision of important infrastructure (both physical and data infrastructure) as well as some operational help to the core businesses and provides support on activities like Fraud Management, Network and Cyber-security and reduction in the work being duplicated. The company is one of the biggest and most important banking companies in the United Kingdom as it provides support not just to industries and commerce but also to economy as a whole and so, there is an air of expectation around the company’s operations that the company might receive a big impact from the after-effects of Brexit. To lessen the effects of any risk that might come up, Barclays has engaged in the expansion of its businesses by the help of an existing subsidiary of the firm called, Barclays Bank Ireland which will enable the company to continue its operations when the United Kingdom leaves the European Union as well as help the firm to face any difficult situations that may arise. Barclays Bank UK Plc mainly includes 4 operational segments, that are Local Consumer Business, Micro and Small Business Enterprises, United Kingdom Portfolio and Wealth and the Credit Card segment, that mostly operates for retail clients and High Net-worth Individual clients.

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BARC latest news and Financial Performance (Interim results for the half year ended 30 June 2019)

On 1st August 2019, Barclays Plc had announced its interim results for the half year ended 30 June 2019. The company reported a decrease in the total income by 1 per cent year on year to £10.79 billion in H1 2019 from £10.93 billion in H1 2018. This was driven by margin compressions and a reduction in risk appetite towards the credit card business. The group’s profit before tax (PBT) was reported at £3.0 Billion in H1 201, 82 per cent year on year increase from the Profit before tax in the first half of 2018 at £1.65 Billion. Attributable profit was also up to £2.07 billion in H1 2019, as compared to £561 million in the first half of 2018, a growth of 72 .92 per cent year on year. Return on Tangible Equity (RoTE) was up to 9.1 per cent in H1 2019 from 11.6 per cent in H1 2018. The company continued targetting a RoTE of more than 9 per cent in 2019 and more than 10 per cent in 2020. The company has also announced an interim dividend of GBX 3.0 per share which was paid on 23rd September 2019.

The company, like the other major banking companies in the United Kingdom, has been involved in the Payment Protection Insurance (PPI) misselling. The company had made a press release regarding this on 9th September 2019, in which the company reported that they had provisions worth £9.6 billion in relation to PPI redressals as on 30th June 2019 and an additional £1.2 billion to £1.6 billion worth of provisions will be made after the reporting period, which might have an impact on its Q3 2019 results.

On 8th October 2019, it was reported by various news sources that three top executives of Barclays Plc lied previously, regarding payments worth hundreds of millions of pound to Qatar in and around the Financial Crisis of 2008, to avoid a government or sovereign bailout of the company, which would have led to the company being put under the United Kingdom Government’s control, when the banking sector was facing one of the toughest challenges in the recent history. The Serious Fraud Office (SFO) has claimed and accused Barclays executives, in 2008, they concealed and masked £322 million to Qatar so that they could secure an £11 billion in emergency finance during the financial crisis of 2008. The executives have been alleged for putting together two advisory services agreements (ASAs) so that they could conceal these transactions, which were not being seemed to be provided to other investors but were asked for by Qatar as a quid pro quo for their contribution as a bailout.

BARC Share Performance

On 18th October 2019, at 08:15 A.M., while writing, Barclays Plc’s stock’s current market price was at GBX 165.52 per share, an increase of 0.93 per cent or GBX 1.52 per share as compared to the previous day’s reported closing price at GBX 164.00 per share. At the current market price, the company’s shares were trading 8.55 per cent below the 52-week high price of GBX 181.00 per share, which was set on November 02, 2018. This was also 26.31 per cent above the 52 week low price of GBX 131.04 per share, which the BARC stock hit on September 12, 2019. The company’s market capitalisation (M-Cap) was currently reported at £28.320 billion.

By the time of writing, 4.64 million of company’s stocks had been traded for the day. The average volume of trade, per day, in the last one year was at 59.41 million stocks. The company’s stock has gained 0.32 per cent in the last one year, from the price of GBX 165.00 per share. The Beta of the stock has been reported to be at 0.8055, which implies that the movement in the stock price is less volatile as compared to the movement of the comparative benchmark index.

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Surface Transform Plc

Surface Transform Plc (SCE) is a Liverpool, the United Kingdom based company that is engaged in the manufacturing and selling of carbon-ceramic brakes for the use in Automotive space. The company’s patented technology includes Carbon Fibre Reinforced Ceramic (CFRC) which converts Carbon into Carbon Silicone Carbide (CIC). This product improves the braking performance of a vehicle by reducing its weight up to 70 per cent as compared to iron brakes. This is a corrosion-free material and improves the handling and drivability of the vehicle. The company’s products include Brake Kits for the biggest luxury car brands like Porsche, Nissan and Ferrari, etc., Automotive OEMs, Aircraft Brakes and other Applications like Brakes in Motorsport vehicles and other special vehicles.

SCE Financial Performance (Preliminary Results for the year ended 31st May 2019)

On 9th September 2019, the company announced its preliminary full year results for the year ended 31st May 2019. The company reported a 26.48 per cent or £361,000 year on year decline in the revenue to £1.002 million in 2019 as compared to £1.363 million in 2018. This was driven by the start of production for the OEM 6 hyper car being delayed, as well as the sensitivity of purchase demand from distributors and problems in production at Company's three Original Equipment Manufacturing customers. The company also announced a decline in the gross margin to 61.6 per cent. The company reported an increase of 13.16 per cent year on year in the Loss before Interest Taxes Depreciation and Amortization (LBITDA) to £1.56 million in 2019 as compared to £1.382 million in 2018. The loss after tax was reported at £2.059 million which translated into a Loss per share of GBX 1.64. The company reportedly made a Capital Expenditure of £175,000 during the year, and cash outflow from operations was reported to be at £2.196 million after which, the cash balance stood at £1.925 million as on 31st May 2019. The company also reported having raised £3.3 million of equity finance during the year, in two separate equity placings.

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SCE Share Performance

On 18th October 2019, at 08:05 A.M., while writing, Surface Transform Plc’s stock’s current market price was at GBX 24.16 per share, a decrease of 1.39 per cent or GBX 0.34 per share as compared to the previous day’s reported closing price at GBX 24.50 per share. At the current market price, the company’s shares were trading 12.94 per cent below the 52-week high price of GBX 27.75 per share, which was set on October 02, 2019. This was also 192.84 per cent above the 52 week low price of GBX 8.25 per share, which the SCE stock hit on May 07, 2019. The company’s market capitalisation (M-Cap) was currently reported at £33.32 million.

By the time of writing, 2,070 of company’s stocks had been traded for the day. The average volume of trade, per day, in the last one year was at 150,790 stocks. The company’s stock has gained 61.07 per cent in the last one year, from the price of GBX 15.06 per share. The Beta of the stock has been reported to be at 1.3243, which implies that the movement in the stock price is more volatile as compared to the movement of the comparative benchmark index.

 

   
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